If there is a decrease in foreign demand for U.S. goods due to a recession in Europe
A)the U.S. aggregate demand will shift right.
B)the U.S. aggregate demand will shift left.
C)the U.S. aggregate demand will not be affected.
D)the U.S. aggregate demand will become steeper.

Question

Quizplus · Accepted Answer

The decrease in foreign demand for U.S. goods will lead to a decline in U.S. exports, thus leading to a leftward shift in the U.S. aggregate demand.

If There Is a Decrease in Foreign Demand for U